H&m hennes & mauritz six month report 2012 martin engegren
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H&m hennes & mauritz six month report 2012 martin engegren

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H&m hennes & mauritz six month report 2012 martin engegren H&m hennes & mauritz six month report 2012 martin engegren Document Transcript

  • SIX-MONTH REPORT 2012 H & M HENNES & MAURITZ AB SIX-MONTH REPORT 1 December 2011 – 31 May 2012 THE FIRST HALF-YEAR  The H&M Group’s sales including VAT increased by 12 percent in local currencies in the first six months of the financial year. Sales in comparable units increased by 3 percent. Converted into SEK, sales excluding VAT amounted to SEK 59,491 m (52,135), an increase of 14 percent.  Profit after financial items increased by 16 percent and amounted to SEK 10,754 m (9,290). Group profit after tax was SEK 7,958 m (6,875), corresponding to SEK 4.81 (4.15) per share. THE SECOND QUARTER  The H&M Group’s sales including VAT increased by 12 percent in local currencies in the second quarter. Sales in comparable units increased by 2 percent. Converted into SEK, sales excluding VAT amounted to SEK 31,658 m (27,632), an increase of 15 percent.  Gross profit amounted to SEK 19,546 m (17,057), corresponding to a gross margin of 61.7 percent (61.7).  Profit after financial items increased by 23 percent and amounted to SEK 7,053 m (5,752). Group profit after tax was SEK 5,219 m (4,257), corresponding to SEK 3.15 (2.57) per share. ----------------------------------------------------------------------------------------------------------------  In addition to the five new markets that H&M will open in 2012, H&M plans to open stores in several new markets in 2013. The markets where store contracts for 2013 have so far been signed are Estonia and Indonesia. Comments by Karl-Johan Persson, CEO “The year started well and the positive trend continued in the second quarter. In the second quarter we saw strong sales and profitability development, with a profit increase of 23 percent. The spring collections have been well received by our customers as shown by our increased market share in a fashion retail market that continues to be challenging. H&M’s attractive customer offering is appreciated by customers in all our 44 markets, in big cities as well as small cities – and in both countries with strong economic growth and countries with a tough macroeconomic climate. Our expansion plan remains intact. We plan to open around 275 new stores net during the full-year. We continue to open new stores in all current markets and we will add five new markets during the year: Bulgaria, Mexico, Latvia, Malaysia and Thailand. In addition, online sales will be launched in the autumn in the US, the world’s largest online market.” SIX MONTHS 2012 SIX MONTHS 2011 Q2 2012 Q2 2011 (SEK m) Net sales 59,491 52,135 31,658 27,632 Gross profit 35,083 31,231 19,546 17,057 gross margin, % 59.0 59.9 61.7 61.7 Operating profit 10,419 9,007 6,893 5,599 operating profit, % 17.5 17.3 21.8 20.3 Net financial items 335 283 160 153 Profit after financial items 10,754 9,290 7,053 5,752 Tax -2,796 -2,415 -1,834 -1,495 Profit for the period 7,958 6,875 5,219 4,257 Earnings per share, SEK 4.81 4.15 3.15 2.57
  • SIX-MONTH REPORT 2012 2 Sales and store openings In the first six months of the financial year, sales including VAT increased by 12 percent in local currencies. Sales in comparable units increased by 3 percent. Converted into SEK, sales including VAT increased by 14 percent to SEK 69,450 m (61,108). Sales excluding VAT increased to SEK 59,491 m (52,135). In the second quarter, sales including VAT increased by 12 percent in local currencies. Sales in comparable units increased by 2 percent. Converted into SEK, sales increased by 14 percent and amounted to SEK 36,947 m (32,400). Sales excluding VAT increased by 15 percent to SEK 31,658 m (27,632). In May, sales including VAT increased by 12 percent 2012 in local currencies compared to the same month the previous year. Sales in comparable units increased by 3 percent. The Group opened 119 (102) stores and closed 16 (11) stores during the first half-year. The total number of stores in the Group as per 31 May 2012 thus amounted to 2,575 (2,297), of which 75 franchise stores, 51 COS stores, 55 Monki stores, 19 Weekday stores and 4 Cheap Monday stores. Results for the first six months Gross profit for the Group for the first six months amounted to SEK 35,083 m (31,231), an increase of 12 percent. This corresponds to a gross margin of 59.0 percent (59.9). The operating profit amounted to SEK 10,419 m (9,007). This corresponds to an operating margin of 17.5 percent (17.3). Operating profit for the six-month period has been charged with depreciation amounting to SEK 1,840 m (1,634). Consolidated net interest income was SEK 335 m (283). Profit after financial items amounted to SEK 10,754 m (9,290), an increase of 16 percent. The Group’s profit after an estimated tax rate of 26.0 percent (26.0) was SEK 7,958 m (6,875) for the six-month period, which represents earnings per share of SEK 4.81 (4.15), an increase of 16 percent. Return on shareholders’ equity, rolling twelve months, was 48.0 percent (47.4) and return on capital employed, rolling twelve months, was 63.0 percent (63.0). Results for the second quarter Gross profit for the Group for the second quarter amounted to SEK 19,546 m (17,057), an increase of 15 percent. This corresponds to a gross margin of 61.7 percent (61.7). Operating profit for the second quarter amounted to SEK 6,893 m (5,599). This corresponds to an operating margin of 21.8 percent (20.3). Profit after financial items amounted to SEK 7,053 m (5,752), an increase of 23 percent. Profit after tax was SEK 5,219 m (4,257), corresponding to SEK 3.15 (2.57) per share.
  • SIX-MONTH REPORT 2012 3 Comments on the second quarter Sales increased by 12 percent in local currencies and 2 percent in comparable units which proves that the spring collections have been well received. Sales have been good in most markets during the quarter and H&M has continued to gain market share. The second quarter is normally characterised by large calendar and weather effects between the months, and this year these effects are even more significant. It is therefore important to view sales development over a full quarter or a season rather than looking at individual months. Many countries are still in a challenging macro-economic situation with austerity measures and restrained consumption. The fact that H&M continues to gain market share even in these challenging markets is a clear sign that H&M’s strong offering is appreciated by customers worldwide. H&M’s gross margin is a result of many different factors, internal as well as external, together with the decisions that H&M makes in line with its strategy to always have the best customer offering in each market. In the quarter, the gross margin was unchanged compared to the corresponding quarter last year and amounted to 61.7 percent (61.7). Overall, the effects of the earlier significantly negative external factors, such as the cotton price, were more or less neutralised. In addition, for purchases made for the second quarter, the US dollar was relatively neutral, but will become negative for purchases for the second half-year. H&M will however, continue its long- term perspective and always offer customers the best combination of fashion and quality at the best price. Markdowns in relation to sales were at the same level as in the same quarter last year. H&M’s long-term investments - aimed at broadening the Group’s total offering - continue, including work on the new store chain & Other Stories which will be launched in 2013. These investments represented a smaller proportion of sales in the second quarter compared to the first quarter 2012. Cost control in the Group remains good. Costs in comparable stores as a proportion of sales decreased compared to the second quarter 2011. Selling and administrative expenses in the quarter amounted to SEK 12,653 m (11,458), an increase of 10 percent which is mainly explained by the expansion. In local currencies, the increase was 8 percent. In the corresponding quarter last year, there was a provision of SEK 248 m related to the incentive programme, H&M Incentive Program*, the majority of which was booked as selling and administrative expenses. The stock-in-trade increased by 8 percent compared to the same time last year and amounted to SEK 11,299 m (10,414). In local currencies, the increase was 6 percent. The increase in stock-in-trade is explained by the expansion. The level and the balance of the stock-in-trade as at 31 May 2012 are deemed to be good. The stock-in-trade represents 9.6 percent (9.6) of sales excluding VAT, rolling twelve months. The stock-in-trade was 22.1 percent (21.9) of total assets. Financial position and cash flow Consolidated total assets as per 31 May 2012 amounted to SEK 51,044 m (47,626), an increase of 7 percent compared to the same time the previous year. The current operations generated a positive cash flow of SEK 10,668 m (8,547). Cash flow was also affected by dividends by SEK -15,723 m (-15,723), investments in fixed assets of SEK -2,620 m (-2,128) and by changes in short-term investments with a duration of four to twelve months of SEK 6,958 m (6,963). During the six-month period, the Group generated a cash flow of SEK -748 m (-2,226). Liquid funds and short-term investments amounted to SEK 13,543 m (15,207). The equity/assets ratio was 71.5 percent (71.3) and the share of risk-bearing capital was 73.5 percent (73.0). Shareholders’ equity apportioned on the outstanding 1,655,072,000 (1,655,072,000) shares as per 31 May 2012 was SEK 22.06 (20.51). *Since the allocation to the incentive programme is based on the increase in dividend compared to the previous year’s dividend, no allocation for the financial year of 2011 will be made to the H&M Incentive Program in 2012.
  • SIX-MONTH REPORT 2012 4 Expansion H&M remains positive as regards to the future expansion and the Group’s business opportunities. H&M’s growth target remains intact. The growth target is to increase the number of stores by 10 – 15 percent per year with continued high profitability, while at the same time increasing sales in comparable units. For the 2011/2012 financial year a net addition of approximately 275 stores is planned. China, the US and the UK are expected to be the largest expansion markets for H&M in 2012. There are also still great opportunities for expansion in markets such as Germany, France and Italy. In 2012 five new markets will be added: Bulgaria (opened in March), Mexico, Latvia, Malaysia and, via franchise, Thailand. In autumn 2012 H&M will start online sales in the US, the world’s largest online market. Expansion continues for the Group’s other brands COS, Monki, Weekday and Cheap Monday. COS, for example, will open stores in six new markets in 2012. The first COS stores in Helsinki and Milan opened in May, while Warsaw’s first store opened in June. All the stores were well received. COS will also open in Hong Kong and Austria during the summer and Kuwait in autumn 2012. The opening in Kuwait will be in cooperation with the franchisee Alshaya. The H&M Home concept will also continue to expand. A completely new independent chain of stores will open in 2013 under the name & Other Stories. The store chain will be a completely new and exciting complement to H&M and the Group’s other brands. The first three H&M stores in Tallinn, Estonia will open in autumn 2013. As communicated previously, Indonesia will become a new franchise market in 2013. Tax For the financial year 2011/2012 the tax rate is expected to be in the range of 25 – 26 percent, depending on the results of the subsidiaries in each country. Parent company The parent company’s external sales amounted to SEK 4 m (3) for the first six months of the financial year. Profit after financial items amounted to SEK 2,085 m (2,437). Investments in fixed assets amounted to SEK 65 m (49). Accounting principles The Group applies the International Financial Reporting Standards (IFRS) as adopted by the EU. This report has been prepared according to IAS 34 Interim Financial Reporting as well as the Swedish Annual Accounts Act. The accounting principles and calculation methods applied in this report are unchanged from those used in the preparation of the Annual Report and Consolidated Financial Statements for 2010/2011 which is described in Note 1 – Accounting principles. The parent company applies the Swedish Annual Accounts Act and the Swedish Financial Reporting Board’s recommendation RFR 2 Accounting for Legal Entities, which essentially involves applying IFRS. In accordance with RFR 2 the parent company does not apply IAS 39 or IAS 38.57.
  • SIX-MONTH REPORT 2012 5 Risks and uncertainties A number of factors may affect H&M’s results and business. Most of these can be dealt with through internal routines, while certain others are affected more by external influences. There are risks and uncertainties related to fashion, weather situations, negative macro-economic changes, changes in consumer behaviour, climate changes, trade interventions, external factors in production countries and foreign currency, but also in connection with expansion into new markets, the launch of new concepts and how the brand is managed. For a more detailed description of risks and uncertainties, refer to the Administration Report and to Note 2 in the Annual Report and Consolidated Accounts for 2010/2011. There were no significant changes in risks and uncertainties during the period. Key-ratio definitions Return on equity: Profit for the year in relation to average shareholders’ equity. Return on capital employed: Profit after financial items plus interest expense in relation to average shareholders’ equity plus average interest-bearing liabilities. Share of risk-bearing capital: Shareholders’ equity plus deferred tax liability in relation to the balance sheet total. Equity/assets ratio: Shareholders’ equity in relation to the balance sheet total. Equity per share: Shareholders’ equity divided by number of shares. P/E ratio: Price per share divided by earnings per share. Comparable units: Comparable units comprise the stores and the internet and catalogue sales countries that have been in operation for at least one financial year. H&M’s financial year is from 1 December to 30 November. All figures within parenthesis refer to the corresponding period or point of time the previous year. CALENDAR 27 September 2012 Nine-month report, 1 December 2011 – 31 August 2012 30 January 2013* Full-year report 2012, 1 December 2011 – 30 November 2012 21 March 2013 Three-month report, 1 December 2012 – 28 February 2013 * Please note that the date of the full-year report has been changed from 31 January 2013 to 30 January 2013. The Six-month Report has not been audited by the company’s auditors. Stockholm, 19 June 2012 Board of Directors
  • SIX-MONTH REPORT 2012 6 The undersigned hereby provide an assurance that the half-year report for 1 December 2011 – 31 May 2012 provides a true and fair view of the parent company’s and the Group’s business, positions and earnings, and also describe the significant risks and uncertainties faced by the companies making up the Group. Stockholm 19 June, 2012 Stefan Persson Marie Björstedt Mia Brunell Livfors Chairman of the Board Board member Board member Anders Dahlvig Lottie Knutson Sussi Kvart Board member Board member Board member Bo Lundquist Melker Schörling Christian Sievert Board member Board member Board member Margareta Welinder Karl-Johan Persson Board member Managing Director The information in this Interim Report is that which H & M Hennes & Mauritz AB (publ) is required to disclose under Sweden’s Securities Market Act. It will be released for publication at 8.00 (CET) on 20 June 2012. CONTACT PERSONS Nils Vinge, IR +46-8-796 52 50 Jyrki Tervonen, CFO +46-8-796 52 77 Karl-Johan Persson, CEO +46-8-796 52 33 Switchboard +46-8-796 55 00 H & M Hennes & Mauritz AB (publ) SE-106 38 Stockholm Phone: +46-8-796 55 00, Fax: +46-8-24 80 78, E-mail: info@hm.com Registered office: Stockholm, Reg. No. 556042-7220 H & M Hennes & Mauritz AB (publ) was founded in Sweden in 1947 and is quoted on NASDAQ OMX Stockholm. The company’s business concept is to offer fashion and quality at the best price. In addition to H&M, the group includes the brands COS, Monki, Weekday and Cheap Monday as well as H&M Home. The H&M Group has more than 2,500 stores in 44 markets including franchise markets. In 2011, sales including VAT were SEK 128,810 million and the number of employees was more than 94,000. For further information, visit www.hm.com.
  • SIX-MONTH REPORT 2012 7 GROUP INCOME STATEMENT (SEK m) 1 Dec 2011- 1 Dec 2010- 1 March 2012- 1 March 2011- 1 Dec 2010- 31 May 2012 31 May 2011 31 May 2012 31 May 2011 30 Nov 2011 Sales including VAT 69,450 61,108 36,947 32,400 128,810 Sales excluding VAT 59,491 52,135 31,658 27,632 109,999 Cost of goods sold -24,408 -20,904 -12,112 -10,575 -43,852 GROSS PROFIT 35,083 31,231 19,546 17,057 66,147 Gross margin, % 59.0 59.9 61.7 61.7 60.1 Selling expenses -22,939 -20,596 -11,808 -10,623 -42,517 Administrative expenses -1,725 -1,628 -845 -835 -3,251 OPERATING PROFIT 10,419 9,007 6,893 5,599 20,379 Operating margin, % 17.5 17.3 21.8 20.3 18.5 Interest income 337 285 161 154 568 Interest expense -2 -2 -1 -1 -5 PROFIT AFTER FINANCIAL ITEMS 10,754 9,290 7,053 5,752 20,942 Tax -2,796 -2,415 -1,834 -1,495 -5,121 PROFIT FOR THE PERIOD 7,958 6,875 5,219 4,257 15,821 All profit is attributable to the shareholders of the parent company H & M Hennes & Mauritz AB. Earnings per share, SEK* 4.81 4.15 3.15 2.57 9.56 Number of shares, thousands* 1,655,072 1,655,072 1,655,072 1,655,072 1,655,072 Depreciation, total 1,840 1,634 929 826 3,262 of which cost of goods sold 207 184 105 93 366 of which selling expenses 1,521 1,350 767 683 2,698 of which administrative expenses 112 100 57 50 198 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (SEK m) 1 Dec 2011- 1 Dec 2010- 1 March 2012- 1 March 2011- 1 Dec 2010- 31 May 2012 31 May 2011 31 May 2012 31 May 2011 30 Nov 2011 PROFIT FOR THE PERIOD 7,958 6,875 5,219 4,257 15,821 Other comprehensive income Translation differences 37 -996 870 -15 -35 Change in hedging reserves 189 -516 403 -216 -113 Tax attributable to other comprehensive income -49 134 -105 56 30 OTHER COMPREHENSIVE INCOME 177 -1,378 1,168 -175 -118 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 8,135 5,497 6,387 4,082 15,703 All comprehensive profit is attributable to the shareholders of the parent company H & M Hennes & Mauritz AB. * Before and after dilution.
  • SIX-MONTH REPORT 2012 8 GROUP BALANCE SHEET IN SUMMARY (SEK m) 31 May 2012 31 May 2011 30 Nov 2011 ASSETS Fixed assets Intangible fixed assets 1,222 1,119 1,035 Tangible fixed assets 18,049 15,348 17,393 Financial assets 2,035 1,638 1,842 21,306 18,105 20,270 Current assets Stock-in-trade 11,299 10,414 13,819 Current receivables 4,896 3,900 4,822 Short-term investments, 4-12 months - 1,204 6,958 Liquid funds 13,543 14,003 14,319 29,738 29,521 39,918 TOTAL ASSETS 51,044 47,626 60,188 EQUITY AND LIABILITIES Equity 36,516 33,946 44,104 Long-term liabilities* 1,390 1,169 1,327 Current liabilities** 13,138 12,511 14,757 TOTAL EQUITY AND LIABILITIES 51,044 47,626 60,188 * Only provisions for pensions are interest-bearing. ** No current liabilities are interest-bearing. CHANGE IN GROUP EQUITY IN SUMMARY (SEK m) 31 May 2012 31 May 2011 30 Nov 2011 Shareholders' equity at the beginning of the period 44,104 44,172 44,172 Adjustment of opening balance* - - -48 Total comprehensive income for the period 8,135 5,497 15,703 Dividend -15,723 -15,723 -15,723 Shareholders' equity at the end of the period 36,516 33,946 44,104 * Adjustment of pension obligations related to prior years.
  • SIX-MONTH REPORT 2012 9 GROUP CASH FLOW STATEMENT (SEK m) 1 Dec 2011- 1 Dec 2010- 31 May 2012 31 May 2011 Current operations Profit after financial items* 10,754 9,290 Provisions for pensions 30 9 Depreciation 1,840 1,634 Tax paid -3,830 -3,106 Cash flow from current operations before changes in working capital 8,794 7,827 Cash flow from changes in working capital Current receivables 222 383 Stock-in-trade 2,525 901 Current liabilities -873 -564 CASH FLOW FROM CURRENT OPERATIONS 10,668 8,547 Investment activities Investment in intangible fixed assets -328 -47 Investment in tangible fixed assets -2,292 -2,081 Change in short-term investments, 4 - 12 months 6,958 6,963 Other investments -31 115 CASH FLOW FROM INVESTMENT ACTIVITIES 4,307 4,950 Financing activities Dividend -15,723 -15,723 CASH FLOW FROM FINANCING ACTIVITIES -15,723 -15,723 CASH FLOW FOR THE PERIOD -748 -2,226 Liquid funds at beginning of the financial year 14,319 16,691 Cash flow for the period -748 -2,226 Exchange rate effect -28 -462 Liquid funds at end of the period** 13,543 14,003 * Interest paid for the Group amounts to SEK 2 m (2). ** Liquid funds and short-term investments 4-12 months at the end of the period amounted to SEK 13,543 m (15,207).
  • SIX-MONTH REPORT 2012 10 SEK m SEK m No. of stores New Closed COUNTRY 2012 2011 SEK Local curr. 31 May 2012 stores stores Sweden 4,079 4,078 0 0 174 1 Norway 2,726 2,530 8 5 105 1 Denmark 2,165 2,018 7 7 90 United Kingdom 5,118 4,236 21 16 215 5 3 Switzerland 2,953 2,941 0 -5 81 2 1 Germany 15,357 14,324 7 7 397 6 3 Netherlands 3,416 3,400 0 0 120 2 Belgium 1,662 1,546 7 7 70 5 1 Austria 2,408 2,322 4 4 66 1 1 Luxembourg 192 189 2 2 10 Finland 1,183 1,118 6 6 49 3 1 France 4,928 4,470 10 10 173 6 1 USA 6,021 4,430 36 29 239 8 2 Spain 2,989 2,886 4 4 137 6 1 Poland 1,447 1,298 11 20 95 6 Czech Republic 372 338 10 13 27 3 Portugal 440 444 -1 -1 23 Italy 2,388 2,149 11 11 94 7 Canada 1,456 1,249 17 13 59 1 Slovenia 238 240 -1 -1 12 Ireland 288 243 19 18 15 Hungary 290 231 26 37 23 3 Slovakia 160 118 36 36 12 2 Greece 431 365 18 18 23 1 China 2,526 1,580 60 47 101 19 Japan 1,149 701 64 49 19 4 Russia 945 681 39 38 27 8 South Korea 269 172 56 51 7 1 Turkey 205 130 58 73 8 Romania 288 103 180 191 15 4 Croatia 260 62 319 328 10 4 Singapore 202 1 Bulgaria 35 3 3 Franchise 864 516 67 71 75 7 2 Total 69,450 61,108 14 12 2,575 119 16 SALES INCLUDING VAT BY COUNTRY AND NUMBER OF STORES Six months, 1 December - 31 May Change in %
  • SIX-MONTH REPORT 2012 11 SEK m SEK m No. of stores New Closed COUNTRY Q2-2012 Q2-2011 SEK Local curr. 31 May 2012 stores stores Sweden 2,069 2,091 -1 -1 174 1 Norway 1,367 1,287 6 3 105 1 Denmark 1,144 1,066 7 7 90 United Kingdom 2,752 2,295 20 12 215 2 2 Switzerland 1,550 1,558 -1 -6 81 1 1 Germany 8,069 7,601 6 6 397 5 1 Netherlands 1,849 1,860 -1 -1 120 1 Belgium 861 800 8 7 70 5 Austria 1,271 1,200 6 6 66 1 Luxembourg 99 99 1 3 10 Finland 611 580 5 5 49 3 France 2,545 2,385 7 7 173 6 1 USA 3,224 2,297 40 28 239 5 Spain 1,527 1,490 2 2 137 4 Poland 781 701 11 19 95 4 Czech Republic 200 185 8 11 27 2 Portugal 219 227 -4 -4 23 Italy 1,331 1,149 16 16 94 6 Canada 800 669 20 13 59 Slovenia 127 128 -1 -1 12 Ireland 149 128 16 15 15 Hungary 162 130 25 36 23 2 Slovakia 85 62 37 37 12 1 Greece 229 188 22 22 23 China 1,451 888 63 46 101 12 Japan 740 350 111 87 19 4 Russia 573 398 44 42 27 6 South Korea 160 99 62 54 7 Turkey 121 76 59 70 8 Romania 161 103 56 64 15 4 Croatia 162 62 161 167 10 4 Singapore 104 1 Bulgaria 35 3 3 Franchise 419 248 69 64 75 7 1 Total 36,947 32,400 14 12 2,575 90 6 SALES INCLUDING VAT BY COUNTRY AND NUMBER OF STORES Second quarter, 1 March - 31 May Change in %
  • SIX-MONTH REPORT 2012 12 Six months, 1 December - 31 May 2012 2011 2010 2009 2008 Sales including VAT, SEK m 69,450 61,108 60,699 58,352 48,653 Sales excluding VAT, SEK m 59,491 52,135 51,879 49,837 41,351 Change from previous year, % 14.1 0.5 4.1 20.5 12.3 Operating profit, SEK m 10,419 9,007 11,943 9,035 8,954 Operating margin, % 17.5 17.3 23.0 18.1 21.7 Depreciation for the period, SEK m 1,840 1,634 1,555 1,436 1,155 Profit after financial items, SEK m 10,754 9,290 12,095 9,338 9,490 Profit after tax, SEK m 7,958 6,875 8,950 6,770 6,880 Liquid funds and short-term investments, SEK m 13,543 15,207 18,992 14,904 14,528 Stock-in-trade, SEK m 11,299 10,414 8,562 8,601 7,073 Equity, SEK m 36,516 33,946 36,064 31,644 27,263 Number of shares, thousands* 1,655,072 1,655,072 1,655,072 1,655,072 1,655,072 Earnings per share, SEK* 4.81 4.15 5.41 4.09 4.16 Shareholders' equity per share, SEK* 22.06 20.51 21.79 19.12 16.47 Cash flow from current operations per share, SEK* 6.45 5.16 7.55 4.35 4.65 Share of risk-bearing capital, % 73.5 73.0 75.9 74.8 76.0 Equity/assets ratio, % 71.5 71.3 71.8 71.0 74.2 Total number of stores 2,575 2,297 2,062 1,822 1,593 Rolling twelve months Earnings per share, SEK* 10.21 10.03 11.22 9.17 8.88 Return on shareholders' equity, % 48.0 47.4 54.8 51.6 56.9 Return on capital employed, % 63.0 63.0 72.9 70.9 77.4 Definition on key figures see page 5. FIVE YEAR SUMMARY * Before and after dilution. The number of shares has been adjusted for all periods because of the two-for-one share split carried out by H&M in 2010.
  • SIX-MONTH REPORT 2012 13 KEY RATIOS PER QUARTER Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Sales including VAT, SEK m 31,070 27,587 32,758 29,095 31,604 31,475 34,792 28,708 32,400 31,511 36,191 32,503 36,947 Sales excluding VAT, SEK m 26,538 23,545 28,011 24,846 27,033 26,893 29,711 24,503 27,632 26,912 30,952 27,832 31,658 Change from previous year, % 23 13 6 7 2 14 6 -1 2 0 4 14 15 Operating profit, SEK m 5,671 4,700 7,909 4,978 6,965 5,656 7,060 3,408 5,599 4,707 6,665 3,526 6,893 Operating margin, % 21.4 20.0 28.2 20.0 25.8 21.0 23.8 13.9 20.3 17.5 21.5 12.7 21.8 Depreciation for the period, SEK m 715 722 672 772 783 777 729 808 826 831 797 911 929 Profit after financial items, SEK m 5,784 4,773 7,992 5,055 7,040 5,735 7,178 3,538 5,752 4,850 6,802 3,701 7,053 Profit after tax, SEK m 4,193 3,460 6,154 3,741 5,209 4,244 5,487 2,618 4,257 3,589 5,357 2,739 5,219 Liquid assets*, SEK m 14,904 16,238 22,025 26,200 18,992 21,362 24,858 24,355 15,207 16,895 21,277 22,029 13,543 Stock-in-trade, SEK m 8,601 10,215 10,240 8,402 8,562 10,545 11,487 10,822 10,414 13,310 13,819 12,397 11,299 Equity, SEK m 31,644 34,612 40,613 43,746 36,064 39,352 44,172 45,587 33,946 38,214 44,104 45,852 36,516 Earnings per share, SEK** 2.53 2.09 3.72 2.26 3.15 2.56 3.32 1.58 2.57 2.17 3.24 1.65 3.15 Equity per share, SEK** 19.12 20.91 24.54 26.43 21.79 23.78 26.69 27.54 20.51 23.09 26.65 27.70 22.06 Cash flow from current operations per share, SEK** 3.60 1.91 4.60 3.25 4.30 2.23 3.42 0.46 4.70 1.62 3.75 1.34 5.11 Share of risk-bearing capital, % 74.8 76.2 78.5 80.8 75.9 75.8 76.2 81.4 73.0 72.9 74.9 79.1 73.5 Equity/assets ratio, % 71.0 72.8 74.7 77.2 71.8 72.3 74.6 79.9 71.3 71.4 73.3 77.6 71.5 Total number of stores 1,822 1,840 1,988 1,992 2,062 2,078 2,206 2,212 2,297 2,325 2,472 2,491 2,575 Rolling 12 months Earnings per share, SEK** 9.18 9.26 9.90 10.61 11.22 11.69 11.29 10.61 10.03 9.64 9.56 9.63 10.21 Return on shareholders' equity, % 51.6 46.8 42.2 41.4 54.8 52.3 44.1 39.3 47.4 41.1 35.8 34.9 48.0 Return on capital employed, % 70.9 64.5 56.7 55.4 72.9 69.3 58.7 52.3 63.0 54.6 47.1 45.8 63.0 Stock-in-trade in % of turnover 8.9 10.2 10.1 8.2 8.3 9.9 10.6 10.0 9.6 12.2 12.6 10.9 9.6 * Liquid funds and short-term investments Definitions on key figures see page 5. 201220102009 ** Before and after dilution. The number of shares has been adjusted for all periods because of the two-for- one share split carried out by H&M in 2010. 2011
  • SIX-MONTH REPORT 2012 14 SEGMENT REPORTING (SEK m) 1 Dec 2011- 1 Dec 2010- 31 May 2012 31 May 2011 Nordic region External net sales 8,171 7,848 Operating profit 213 89 Operating margin, % 2.6 1.1 Eurozone excluding Finland External net sales 29,277 27,454 Operating profit 764 385 Operating margin, % 2.6 1.4 Rest of the World External net sales 22,043 16,833 Operating profit 1,586 715 Operating margin, % 7.2 4.2 Group Functions Net sales to other segments 30,017 29,062 Operating profit 7,856 7,818 Eliminations -30,017 -29,062 Net sales to other segments Total External net sales 59,491 52,135 Operating profit 10,419 9,007 Operating margin, % 17.5 17.3
  • SIX-MONTH REPORT 2012 15 PARENT COMPANY INCOME STATEMENT (SEK m) 1 Dec 2011- 1 Dec 2010- 1 March 2012- 1 March 2011- 1 Dec 2010- 31 May 2012 31 May 2011 31 May 2012 31 May 2011 30 Nov 2011 External sales excluding VAT 4 3 3 2 24 Internal sales excluding VAT* 3,533 2,747 1,886 1,612 6,958 GROSS PROFIT 3,537 2,750 1,889 1,614 6,982 Selling expenses -1,467 -1,158 -809 -678 -2,235 Administrative expenses -1,629 -1,258 -969 -673 -2,671 OPERATING PROFIT 441 334 111 263 2,076 Dividend from subsidiaries 1,547 2,022 1,547 1,914 14,224 Interest income 97 81 45 45 151 Interest expense 0 0 0 0 0 PROFIT AFTER FINANCIAL ITEMS 2,085 2,437 1,703 2,222 16,451 Year-end appropriations - - - - -9 Tax -141 -109 -41 -52 -596 PROFIT FOR THE PERIOD 1,944 2,328 1,662 2,170 15,846 * Includes royalty received from Group companies PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME (SEK m) 1 Dec 2011- 1 Dec 2010- 1 March 2012- 1 March 2011- 1 Dec 2010- 31 May 2012 31 May 2011 31 May 2012 31 May 2011 30 Nov 2011 PROFIT FOR THE PERIOD 1,944 2,328 1,662 2,170 15,846 Other comprehensive income - - - - - TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1,944 2,328 1,662 2,170 15,846
  • SIX-MONTH REPORT 2012 16 PARENT COMPANY BALANCE SHEET IN SUMMARY (SEK m) ASSETS 31 May 2012 31 May 2011 30 Nov 2011 Fixed assets Tangible fixed assets 451 415 441 Financial fixed assets 1,504 1,762 1,843 1,955 2,177 2,284 Current assets Current receivables 2,003 85 10,675 Short-term investments, 4-12 months - 1,202 5,038 Liquid funds 369 556 678 2,372 1,843 16,391 TOTAL ASSETS 4,327 4,020 18,675 EQUITY AND LIABILITIES Equity 3,265 3,526 17,044 Untaxed reserves 128 119 128 Long-term liabilities* 240 223 240 Current liabilities** 694 152 1,263 TOTAL EQUITY AND LIABILITIES 4,327 4,020 18,675 * Relates to provisions for pensions. ** No current liabilities are interest-bearing.